Linc Energy Limited (ASX:LNC) Termination of ERG Resources LLC Agreement

Brisbane, July 25, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) refers to its announcement on 20 July 2011 in relation to its wholly owned subsidiary, Linc Gulf Coast Petroleum Inc. ("Linc Gulf Coast") terminating its contract with ERG Resources LLC ("ERG").

On 22 July 2011 ERG notified Linc Gulf Coast by letter that it did not accept Linc Gulf Coast's termination of the contract, disputed the grounds for terminating the contract relied upon by Linc Gulf Coast in its termination notice and requested that the parties meet to discuss the issues raised in Linc Gulf Coast's termination notice. On 22 July 2011 (US time), Linc Gulf Coast was further advised that ERG had filed a lawsuit against Linc Gulf Coast, Linc Energy Operations, Inc. and Linc Energy Ltd, in the District Court of Harris County, Texas, US, seeking, among other things, an order requiring Linc Gulf Coast to perform the contract, or, in the alternative, damages in the amount of US$75 million.

Neither Linc Energy nor any of its named subsidiaries has been served with the ERG complaint at this time. Linc Gulf Coast maintains that it terminated the contract in accordance with its terms and that ERG's lawsuit is without merit. If ever served, Linc Gulf Coast intends to vigorously defend the lawsuit, and will seek to redress its own losses by way of claim against ERG, its associates and subsidiaries.

Contact

Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Brook Burke Company Secretary Phone: +61-7-3229-0800 E-mail: brook.burke@lincenergy.com.au Information for Investors: Justyn Peters General Manager Investor Relations Phone: +61-7-3229-0800 E-mail: anton.rohner@lincenergy.com.au http://www.lincenergy.com.au